SIDBI Venture Capital Ltd (SVCL), the wholly owned asset management company and a subsidiary of SIDBI, is looking to set up a corpus of Rs 600 crore across three funds.

While two of the funds will cater to State specific micro, small and medium enterprises ​and start-ups in West Bengal and Maharashtra; the third will be an Impact Innovation Fund for financing innovative start-ups.

The state specific funds will be in collaboration with the respective State governments; while the Impact Innovation Fund is likely to be co-managed by an international manager, Ananta P Sarma, Managing Director and CEO, SVCL, said.

“Approximately we will have Rs 200 crore in each of the three funds. Details on the Impact Innovation fund is still being worked out,” he said. Sarma was speaking on the sidelines of the “Evolving Healthcare Investment Landscape” organised by the Confederation of Indian Industry (CII).

SVCL currently has under its fold five funds with a combined worth of Rs 1,000 crore, two of the funds – where it invested Rs 100 crore and Rs 500 crore – have nearly been divested. These have secured returns (internal rate of returns) to the tune of 16.5 and 15 per cent, respectively.

WB Specific Funds

According to Sarma, one of the funds is dedicated to West Bengal-based MSMEs, is expected to be ready over the next six months. While 50 per cent of the contribution towards the fund will be from the State government; SIDBI will put in the other half.​

​“We have also asked the WB government to come up with the names of the companies where funding can be sought. In another six month’s time this fund should be ready,” he said.

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